> If the goal isn't actively set to help and streamline the process
In the reimbursements example, the goal shifted, by design. The environment moved from high-trust to low-trust as the department grew, and the aim moved from "keeping people happy" to "spending less money"/"not being taken advantage of". Not defending it -- I hate paperwork like this -- but it seems almost inevitable as groups of any kind grow large enough and you actually can't assume good faith anymore.
Over the long term, yes. However, universities like Buffalo might have some peculiarities. They are overall run by the state government, and professors/students/staff are state employees. In addition, the money that pays their salary often comes from the federal government (NSF, DOE, NIH) which comes with their own restrictions and regulations beyond typical accounting practices.
So things like reimbursements are handled by a university trying to implement a state government's interpretation of both granting agencies desires and federal and state laws/regulations.
My university seems to be going crazy with rules lately. My hypothesis is that the state, and by extension the university, wants to button down everything so as not draw attention of the federal government (given who is in charge). It's taking already stressed professors (funding cuts, etc) and piling on more stress.
The level of trust didn't change at all, Joann must have read every single receipt as she filled out the forms. A fraudulent or out-of-policy expense would've been noticed either way.
High-trust doesn't mean absolute trust. Hand me a pile of receipts and I'll figure it out (probably with leeway in your favor) is much higher trust than uploading receipt, categorizing, adding explanations for exceptions, etc. One feels reasonable and still dignified. The other feels adversarial and paternalistic.
This, the person nitpicking the Concur entries might as well have done Joanne's job and achieve two things at once. Compliance to concur and the regulatory compliance built into the concur process and not wasting everyone's time doing concur
I remember at a previous job I had to do a fair bit of business travel. The company had their own internal tool for filing expense reports.
I would do the typical thing of "take picture of receipt, upload receipt, specify how much it cost, etc.", and for the most part it was seemless and it would be sent to my bank account.
One time, I bought a box of Fiber One bars at a CVS Pharmacy and expensed that. I got a phone call from the billing department asking why I would expense something like that and I said something like "because I don't usually eat that healthy during business travel and I suspect you can guess the reason after that". They told me they would get back to me, and then I got an email telling me that they rejected the expense report and I would have to file it again to get the rest of my stuff reimbursed.
I can be a pretty petty dude, so I filed it again, completely unchanged, I get another phone call telling me to remove it, and this repeated two more times. Eventually I complained to my manager and he was able to get them to let me expense it and it all worked out.
I find it amusing, because the box of Fiber One bars was less than five bucks. I suspect all the time that they wasted of theirs and mine probably cost considerably more than the $5 would have saved from not covering it.
That is more likely a result of legal requirements. As a general rule any personal benefit you get counts as your income and is taxed accordingly. Expensing is not, instead counting as a business expense.
To avoid people just forming a personal company and declaring everything they spend a business expense and thus not taxed there are rules around what can be counted as a business expense.
If you instead want to take your salary in the form of Fiber One bars, but pay taxes on that spending in dollars, then your accounting department might have had fewer issues since they would not be mixing legally distinct costs and accidentally committing financial fraud.
37 signals has a story about this, and the birth of policies & procedures that cost far more than the "crime" they're intended to prevent, because in your case it was $5 in granola bars, but that scenario will repeat itself for the rest of time, and extra resources will likely be dedicated to this "problem area". This seems inevitable as companies grow, and is one of the signals I use that it's close to my time to leave.
Didn't you have a specific per day expense budget? I think there is a department of labor guidance for local travel and a department of state guidance for international travel.
Usually, if your per day expense is less or equal to the guidance (where I work we do $90/day), no one cares. If you go above, you pay. The per day expense is for food. Alcohol cannot be claimed as an expense unless you are in sales.
Even in your short, simple comment I see 4? 5? (or more?) pieces of administrative policy that need to be policed, and then we need a process to handle these rules - and the edge cases (ex: what if I'm travelling with someone in sales but I'm the senior employee and we take a client out for dinner? only sales can expense alcohol but typically the most senior employee must pay), and the resubmission process, and the approve of exceptions process, and on it goes...
I wouldn't be so sure the friction wasn't intentional. They are probably trying to cut costs, and by making the expense report process onerous, you will encourage people to expense things less, and therefore save money.
Agree, but your explanation stops short of the full explanation: because fraud appeared, people were not punished for it, so it grew until it mattered, so everyone was punished with bureaucracy. If fraud would be quickly and severely punished (by termination), it would be at a level close enough to zero to even ignore it. But I think companies think it is better to get lower paid employees with less ethics and save 10k while losing 1k to fraud, per employee.
Similar for me in the corporate world, in the 80s, I just had to save the receipts and give the to the Department Admin. Easy as pie.
Then that all changed in the 90s. Everytime I traveled, using the 'canned' system provided to us, you could spend days trying to fill in the forms. It would ask you for all kind of codes no one knew to supply.
Multiply that by 10s of employees, there is no way firing a Dept admin and contracting that out saved any money. It has to cost the company 2x or 3x as much as one admin costs. And that is a low-ball estimate.
My experience has been that a hell of a lot of “automation” doesn’t automate much, but is used as an excuse to make people do work that didn’t used to be their job.
That reminds me of voicemail systems that are clearly engineered to confuse, demoralize and eventually hang up on folks. I had a major Canadian bank send me to something that simply didn't go anywhere, but took you around the merry go round for 40 mins before revealing it to be a black hole.
Sometimes it's hard to see the incentives, but once you do - it all makes sense. And often they're contrary to what you would assume would be the company's goal.
> If the goal isn't actively set to help and streamline the process
In the reimbursements example, the goal shifted, by design. The environment moved from high-trust to low-trust as the department grew, and the aim moved from "keeping people happy" to "spending less money"/"not being taken advantage of". Not defending it -- I hate paperwork like this -- but it seems almost inevitable as groups of any kind grow large enough and you actually can't assume good faith anymore.
Over the long term, yes. However, universities like Buffalo might have some peculiarities. They are overall run by the state government, and professors/students/staff are state employees. In addition, the money that pays their salary often comes from the federal government (NSF, DOE, NIH) which comes with their own restrictions and regulations beyond typical accounting practices.
So things like reimbursements are handled by a university trying to implement a state government's interpretation of both granting agencies desires and federal and state laws/regulations.
My university seems to be going crazy with rules lately. My hypothesis is that the state, and by extension the university, wants to button down everything so as not draw attention of the federal government (given who is in charge). It's taking already stressed professors (funding cuts, etc) and piling on more stress.
The level of trust didn't change at all, Joann must have read every single receipt as she filled out the forms. A fraudulent or out-of-policy expense would've been noticed either way.
High-trust doesn't mean absolute trust. Hand me a pile of receipts and I'll figure it out (probably with leeway in your favor) is much higher trust than uploading receipt, categorizing, adding explanations for exceptions, etc. One feels reasonable and still dignified. The other feels adversarial and paternalistic.
This, the person nitpicking the Concur entries might as well have done Joanne's job and achieve two things at once. Compliance to concur and the regulatory compliance built into the concur process and not wasting everyone's time doing concur
I remember at a previous job I had to do a fair bit of business travel. The company had their own internal tool for filing expense reports.
I would do the typical thing of "take picture of receipt, upload receipt, specify how much it cost, etc.", and for the most part it was seemless and it would be sent to my bank account.
One time, I bought a box of Fiber One bars at a CVS Pharmacy and expensed that. I got a phone call from the billing department asking why I would expense something like that and I said something like "because I don't usually eat that healthy during business travel and I suspect you can guess the reason after that". They told me they would get back to me, and then I got an email telling me that they rejected the expense report and I would have to file it again to get the rest of my stuff reimbursed.
I can be a pretty petty dude, so I filed it again, completely unchanged, I get another phone call telling me to remove it, and this repeated two more times. Eventually I complained to my manager and he was able to get them to let me expense it and it all worked out.
I find it amusing, because the box of Fiber One bars was less than five bucks. I suspect all the time that they wasted of theirs and mine probably cost considerably more than the $5 would have saved from not covering it.
That is more likely a result of legal requirements. As a general rule any personal benefit you get counts as your income and is taxed accordingly. Expensing is not, instead counting as a business expense.
To avoid people just forming a personal company and declaring everything they spend a business expense and thus not taxed there are rules around what can be counted as a business expense.
If you instead want to take your salary in the form of Fiber One bars, but pay taxes on that spending in dollars, then your accounting department might have had fewer issues since they would not be mixing legally distinct costs and accidentally committing financial fraud.
37 signals has a story about this, and the birth of policies & procedures that cost far more than the "crime" they're intended to prevent, because in your case it was $5 in granola bars, but that scenario will repeat itself for the rest of time, and extra resources will likely be dedicated to this "problem area". This seems inevitable as companies grow, and is one of the signals I use that it's close to my time to leave.
Didn't you have a specific per day expense budget? I think there is a department of labor guidance for local travel and a department of state guidance for international travel.
Usually, if your per day expense is less or equal to the guidance (where I work we do $90/day), no one cares. If you go above, you pay. The per day expense is for food. Alcohol cannot be claimed as an expense unless you are in sales.
There was a limit but I wasn't allowed to just buy anything I wanted. I think I got up to $100 a day (not counting hotel).
I didn't expense alcohol.
Even in your short, simple comment I see 4? 5? (or more?) pieces of administrative policy that need to be policed, and then we need a process to handle these rules - and the edge cases (ex: what if I'm travelling with someone in sales but I'm the senior employee and we take a client out for dinner? only sales can expense alcohol but typically the most senior employee must pay), and the resubmission process, and the approve of exceptions process, and on it goes...
>> Joann, who was over 60
Just to ensure you know that Joan was not technical, because old.
I wouldn't be so sure the friction wasn't intentional. They are probably trying to cut costs, and by making the expense report process onerous, you will encourage people to expense things less, and therefore save money.
Presumably this shift happened due to another F word -- Fraud.
Agree, but your explanation stops short of the full explanation: because fraud appeared, people were not punished for it, so it grew until it mattered, so everyone was punished with bureaucracy. If fraud would be quickly and severely punished (by termination), it would be at a level close enough to zero to even ignore it. But I think companies think it is better to get lower paid employees with less ethics and save 10k while losing 1k to fraud, per employee.
>forcing us to file our own travel reimbursement
Similar for me in the corporate world, in the 80s, I just had to save the receipts and give the to the Department Admin. Easy as pie.
Then that all changed in the 90s. Everytime I traveled, using the 'canned' system provided to us, you could spend days trying to fill in the forms. It would ask you for all kind of codes no one knew to supply.
Multiply that by 10s of employees, there is no way firing a Dept admin and contracting that out saved any money. It has to cost the company 2x or 3x as much as one admin costs. And that is a low-ball estimate.
My experience has been that a hell of a lot of “automation” doesn’t automate much, but is used as an excuse to make people do work that didn’t used to be their job.
That reminds me of voicemail systems that are clearly engineered to confuse, demoralize and eventually hang up on folks. I had a major Canadian bank send me to something that simply didn't go anywhere, but took you around the merry go round for 40 mins before revealing it to be a black hole.
Sometimes it's hard to see the incentives, but once you do - it all makes sense. And often they're contrary to what you would assume would be the company's goal.